Consumers want clear line between advice and sales
LONDON (Reuters) - Consumers want a clearer separation between financial advice that helps them understand products and advice that helps them buy products, according to research by Aegon.
An 18-month consumer research project to find out what people want from a financial adviser showed that consumers wanted to understand products better and would like to know when they are being sold to. They also wanted more information about the long-term planning benefits of receiving advice.
After surveying over 140 people Aegon is now calling for the Financial Services Authority (FSA) to take into account what consumers want when it finalises its retail distribution review reforms.
Aegon has identified five advice concepts that consumers want:
Financial guru: an independent expert providing holistic and personalised advice, who is not solely selling products, as set out in the RDR.
Financial coach: to get people motivated for financial planning and keep them committed Drop-in centre: a problem solving service for people with specific problems, much like those recommended by Aegon UK chief executive Otto Thoresen in his Money Guidance programme.
Personal shopper: to simplify choices available and provide products. Financial superstore: to make buying easy for those with specific needs or for those that know what they want. Head of Aegon corporate affairs Francis McGee said that people wanted financial advice to give them confidence.
"Aegon's research showed people are keen to take financial advice that helps them gain confidence and overcome what they recognise to be bad habits and do the right thing with their finances," he said.
McGee also said that there are signs that people might be more willing to pay for advice that is presented in the right way and designed for their lifestyle.
"The FSA must remember that one of the original aims of the RDR was to open up advice to the wider market," said McGee. "Good quality financial advice is essential to helping people take out the protection and savings they need for the future."
(c) Citywire Financial Publishers Ltd 2008.
